HK power company buying Australian energy assets

HONG KONG: Hong Kong utility CLP Holdings Ltd. said on Wednesday that its Australian subsidiary is buying energy assets from the New South Wales state government for $2 billion.

CLP said its Australian unit, TRUenergy, agreed to buy state-owned EnergyAustralia's energy retailing business, electricity trading rights for state-owned Delta Electricity's coal fired power stations and development sites for three future power station projects.

CLP said in a statement that the deal is expected to be completed by March. It will more than double TRUenergy's customers in Australia to 2.76 million and double the company's power generation capacity in the country to 5,446 megawatts from 3,046 MW currently.

The deal is one of two announced this week as part of a controversial privatization of some electricity assets by the government of New South Wales, Australia's largest energy market.

CLP is the bigger of Hong Kong's two power companies. It also has stakes in energy businesses in China, India and Southeast Asia.

The company has been expanding overseas because of limited opportunities for growth in its home market.